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3 Stories to Start Your Week: October 4, 2021

Financial Advisors Pitching Crypto Losses as an Offset

As many investors are looking for more ways to keep money earned through capital gains, there is an emerging strategy financial advisors are utilizing involving cryptocurrency. Here’s how: Investors can buy various cryptocurrencies through their broker who will sell the digital coins if their value falls by a certain amount, then buy the coins back for around the same price or even cheaper. By doing this, investors are generating a taxable loss that will offset other investment gains.  

This strategy is becoming increasingly popular for a few reasons; One being the volatility of the cryptocurrency market, but more importantly, is the IRS’s classification of crypto as property. Since crypto has this classification the wash sale rules do not apply to it. This tax strategy is a loophole the IRS is looking to crack down on, so financial advisors are attempting to utilize it before that time comes.

Austria to Start Carbon Taxes

Starting next year Austrians will find themselves paying 30 euros (≈$35) per ton of CO2. This cost is likely to be pushed down onto the consumer from companies that are expected to get hit hard. The Austrian government expects this tax initiative to generate about 5 billion euros by 2025. The goal of this initiative, other than to generate tax revenue, is to encourage more climate-friendly forms of transportation.

The government is planning to offset this tax by lessening taxes in other areas, such as corporate, and also providing “climate bonuses” for its citizens dependent upon the region and availability of public transit. This carbon tax being put in place by Austria, and being in talks within the US shows that countries are shifting efforts to decrease pollution through initiatives that will cost consumers.

New Jersey Gas Prices go Down?

While Americans everywhere are experiencing high prices at the pump, New Jersey is set to have a drop in its price. The State Department of Treasury announced a drop in the gas tax by $0.083 this past Friday, however, New Jersey residents say they have not experienced a change in prices yet. This is because the gas currently filled in the tanks at stations was paid for at the previous price and tax, but should see the drop as they are refilled. This decrease comes as a relief to many as prices have been surging for the past year. New Jersey previously held the fourth-highest gas tax in the country, and now stands at 11th following the tax cut.

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